Market leading position in Slovenia. Adequate risk-adjusted capitalization and continued derisking, reflecting success of the bank's transformation. Self-funded deposit base in Slovenia and foreign core markets, with strong liquidity buffers. Uncertainty about the success of privatization and its impact on the bank's ongoing transformation. Declining but still elevated level of legacy nonperforming loans. Some litigation risks and single-name concentration toward home sovereign debt securities. S&P Global Ratings' outlook on Slovenia-based Nova Ljubljanska Banka (NLB) is developing. The developing outlook indicates that we could affirm, raise, or lower our ratings on NLB over the next 6-12 months, during which time we expect that the privatization issue will have been resolved, and the government's plan for a likely IPO will have become
